overinsurance
- Occurs when the value of an insurance policy or policies surpasses the actual worth of the item protected
- The property owner discovered that overinsurance was in place after evaluating the worth of their assets and insurance policies.
- The regulator flagged the practice of overinsurance as potentially problematic for insurers.
- Overinsurance can serve as a safety net, but it can also lead to unnecessary costs.
Provide Feedback